Fremantle's Yolk Property Group is poised for further interstate expansion following its acquisition of national property management business Rental Management Australia.
Fremantle's Yolk Property Group is poised for further interstate expansion following its acquisition of national property management business Rental Management Australia.
Yolk Property Group project director Andrew Graham said the chance to acquire RMA came about earlier this year after it was placed into administration after the collapse of parent company Acquest Capital, an entity related to the Sterling First group of companies.
Before entering administration, RMA had more than 3,600 properties under management across Western Australia, Victoria and Queensland.
In WA, RMA’s rent roll includes 2,300 residential properties and 123 commercial properties under management.
Administrators at Ferrier Hodgson said more than 85 interested parties contacted the group during a sale of business process, with 14 parties shortlisted for due diligence.
RMA creditors approved Yolk’s $7.65 million bid for the company in September, with a deed of company arrangement finalised in October.
Mr Graham, who has been appointed as RMA’s chief executive, said he believed the business had significant growth potential, with its interstate presence to help insulate Yolk from the ebbs and flows of Perth’s highly cyclical residential property market.
“When the opportunity arose to purchase Rental Management Australia, we looked at what the asset would bring to the existing group but also to what we could offer clients and staff of RMA,” he said.
“We see the business as having significant potential due to its strong customer service focus and because of the people behind it, and that includes staff, contractors, landlords and tenants.”
Mr Graham said Yolk had been evaluating the establishment of a property management business for about 12 months, with the acquisition one of a number of moves Yolk has initiated in recent months to access east coast markets.
The company is also developing a 600-lot subdivision near Geelong, in a joint venture with Chinese group Jinding Development.
Mr Graham said Yolk was pursuing land subdivision and townhouse development opportunities in Brisbane.
“This will really help Yolk Property Group expand into Melbourne and also Queensland,” Mr Graham said.
“Businesses that cover Melbourne, Brisbane and Western Australia, they are very few and far between.
“From that point of view, we really saw this as the right opportunity.
“We are looking to expand and grow our business, and that comes down to timing and opportunities.
“We’re analysing everything that comes across our table”.
Yolk Property Group head of capital Chris Wiese will also join RMA, as its chief financial officer, while RMA will continue to operate under its existing branding, as a subsidiary of Yolk.
“We are looking forward to further developing the business and delivering a superior level of customer service to our clients with the aim of ensuring this period of transition is as smooth as possible,” Mr Wiese said.
